Mozambique banks hold Proindicus, Ematum debt – Hanlon

Login

Register

http://www.clubofmozambique.com/

Mozambique banks hold Proindicus, Ematum debt – Hanlon

8:37 CAT | 11 Jul 2016

The local banking sector holds some of the secret loans to Proindicus and Ematum, and thus will be hit by any default, according to Africa Confidential (8 July), which has been well informed on the debt crisis. Millennium BIM bought a “significant amount” of the Proindicus debt. Millennium BIM is 67% owned by Banco Comercial Portugues (Millennium BCP) and 22% by the Mozambican state. Moza (recently renamed from MozaBanco) also holds Proindicus debt.

BCI (Banco Comercial e de Investimentos, the largest bank in Mozambique, 51% owned by the Portuguese state owned Caixa Geral de Depositos) bought more than $30 mn of the original Ematum bond.

The third loan in the $2.3 bn package of secret loans was to the security services owned Mozambique Asset Management (MAM) to finance shipyards. After the special council of ministers meeting Thursday Maleiane did tell journalists that there is still no deal on the MAM loans and negotiations between MAM and lenders are continuing. The $535 mn loan came from the Russian state-owned bank VTB, which in turn passed on all but $50 mn to other lenders.

Africa Confidential also reports that Banco de Mocambique (BdM) is not being even handed in responding to the US$ shortage. “Influence is all and Frelimo sources say the companies with the best connections to the elite get the best treatment” in obtaining dollars, the newsletter says. It also reports that BdM is preventing local banks from selling dollars at the high rates some customers are willing to pay, because that would accelerate the devaluation of the metical.

Africa Confidential’s article is headlined “Frelimo’s ostrich plan” and starts out: “Faced with an economic emergency, the country’s leaders pray for indulgence from donors and hope hungry citizens do not revolt. President Filipe Nyusi still refuses to take special measures to deal with the economic crisis and is butting heads with donors over what is to be done. Meanwhile, he and his government are under extreme pressure from hardliners not to investigate fully the secret loans scandal.” The article is reprinted in the Rhula Weekly Media Review (1 July to 8 July, from page 48) which should be available this week on http://www.rhula.net/downloads.html

By: Joseph Hanlon

Source: News reports & clippings